Advice re Iva with creditfix

[Leigh.p]

Hi, I am 2 years into my IVA with creditfix (originally through Knightsbridge) and have had no real problems so far.
For the past 15 years, I have got a car via my aunt who works for Nissan on their staff least scheme. I get a brand new car every 12 months for a fixed fee which includes tax and insurance. It’s not finance, I simply pay my auntie the figure every month and I am a named driver on the car. It’s a brilliant, affordable scheme which is perfect for me. Knightsbridge were more than happy for me to continue with this in my Iva. However, I had word last month that the cost of my car would be riding from April this year by £80 per month. This brings the total of my car to £245 which includes tax and insurance and despite the jump, it remains the best deal I can get after shopping around.

I sent creditfix an email to let them know about the increase and to ask if there would be any chance of a reduction in my Iva payment. I did say I knew this may be a tall order, I’m a full time student and a single parent so my Iva payment is low as it is, but I said even the smallest amount would help me absorb the rise in car cost. they replied after a few days asking for proof (sent) and reasons. Obviously I don’t know why Nissan have put their prices up other than for business reasons.

A week later I have received an email from the car finance department at creditfix with a long list of things I need to do in order for my “hire purchase” agreement to be considered. These include providing my last 3 bank statements (I’ve only just completed my annual review at Christmas), giving details about my current and new car and finally they add that due to this increase, they will be putting my monthly payment up!! They seem to detail that this is due to me taking on extra credit, which I am not, do you think they maybe don’t understand this? I have emailed back to say I need further clarity.

I’m wishing now I didn’t bother to ask, as if my Iva payment now goes up as well as my car payment, I’m going to be left in a very sticky situation

Grateful for any thoughts or advice.

[Foggy]

Creditfix pay very little attention to detail and, often, do not take the time to understand individual circumstances --- you need to keep on at them to make sure that they undertstand.

Tell them that you have NOT taken on any more credit, but are simply continuing the arrangement that both Knightsbridge AND your creditors had already agreed to.

To be honest, I am surprised it was agreed initially and, yes, it might be pushing things to get the allowance increased to meet the new costs. But Creditfix have no grounds for going back on what has already been agreed, accepted and in operation for the last two years.

[Leigh.p]

Thanks Foggy, it did seem to be a very standard general form they’d sent me. One size fits all etc.
Because I travel around for my job (I’m a student midwife so travel between hospital, university and placement) and have two children, I cannot manage without a car. Because I don’t have any savings, I can’t buy a car outright and nothing I have seen even came close to matching this deal, so I’m kind of stuck. I pick up the new car next week so my payment is going up whether they agree it or not unfortunately...I had no choice or I’d have been left without a car.
I don’t know if it’s relevent, but when I was moved to creditfix I refused to sign their terms and conditions, so remain under those of Knightsbridge.
Do you think I’d be better telephoning them?

Many thanks again.

[Foggy]

Telephoning would get you talking to a call handler with little knowledge and, if they agreed, no written confirmation. I would write direct to the IP.

[normanna]

You can suggest asking for a payment break to save up to buy an older car to get you through the end of the IVA? People rarely need brand new cars and further sacrifices might have to be made, others on here have said that is what they've done. What you were able to do before the IVA might not be what you can do now.

You can always offer up front to extend the IVA to make up for the lower payment so creditors get what they were promised and your IP may be more receptive to considering that.

[Leigh.p]

Thank you for your help, I have emailed creditfix to request a conversation with my IP.

To be honest, when looking at my income and expenditure, I can probably make cut backs here and there to be able to absorb the £80
extra, it will be really tight but I’d rather do that then extend my Iva even further (it’s already 6 years) or take breaks. I have already told creditfix this and only mentioned a possible reduction in my payment to “try my luck” really....I pretty much expected them to say no but even £5/10 a month less would help.

I’ll just have to wait and see if they finally realise I’m not taking out any credit and that I am just continuing with what’s already been agreed, just the payment has risen through no fault of my own. Apparently they allow car finance of up to £250 per month so I’m under that threshold.

[Foggy]

"Apparently they allow car finance of up to £250 per month so I’m under that threshold."

Don't rely on thresholds or expense categories --- these are merely guidelines and each IP and creditor will have their own opinions of what they thinks is acceptable.

[kallis3]

I have to disagree with Normanna - as a midwife, trainee or not, you need a reliable car for your job. Hopefully you can get this sorted.